Alterian, the troubled Bristol-based marketing software group, says revenue generated since April 1 is “in line with management plans”, signalling a turnaround in its fortunes.
The group has had a torrid few months with chief executive David Eldridge resigning in April following a pre-tax loss of £4.29m. That triggered a share price collapse as it struggled to maintain investor confidence in the face of downward revisions in revenue and cashflow forecasts.
Earlier this week Alterian appointed two experienced tech industry figures as its new chief executive and chairman as it continues to recover and in an interim management statement for the period from April 1 to July 15 – published today under disclosure rules required by the Stock Exchange – it announced annual savings of approximately £6m since the crisis.
Cost savings would have a one off implementation cost of £1.2m - as previously announced -and it stressed that its first quarter represents a relatively small proportion of full year revenue.
Meanwhile the development of its new Alterian Alchemy product had progressed well and "will contribute strongly to the second half and future years' performance". It added that despite a challenging economic outlook, Alterian’s analytics technology, supporting its campaign management and analytics products, remains highly competitive and “should provide the basis of good growth in the second half”.
Alterian blamed its crisis on increased costs “aimed at expanding the business” that were not matched by growth in revenues “which were substantially below plan” but says that with its new leadership it “looks forward to realising the value” of its technology and products.
